Posted on 06/14/2015 4:51:00 PM PDT by dontreadthis
Ooh, I didn’t know this!
Don’t know if the article points this out but this might be a quiet step that could lead to secession in the future. If the state owns its own gold it can someday pay its way out of the union or set up their own currency in the event of a break from the States.
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Nevada and Montana have become big Dem havens.
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No significant amount of gold has ever been stored in New York.
Every gold bar has a flat boss for stamping a number.
You should enjoy this one. It is your expertise. I am amazed you did not connect it.
http://www.rapidtrends.com/robert-kahre-vs-the-irs-and-doj/
Heck I’d make the Germans prove where they got it in the first place.
Thanks. Interesting.
On the contrary, legally speaking, only gold and silver can be used. [Constitution of the United States of America, Art 10, para 1]
There are currently about 7000 tons in the New York Fed alone. And addition hundreds of tons in the commercial banks.
Is the number there for the purpose of the bank's inventory? Or to identify owners?
The $20. gold piece for payroll plan didn’t work out too well for him (although I praise his gumption!): http://www.reviewjournal.com/news/employers-gold-silver-payroll-standard-may-bring-hard-time & http://lasvegassun.com/news/2009/aug/14/jury-convicts-business-owner-robert-kahre-tax-frau/ & a supportive article: http://mwcnews.net/focus/politics/34160-us-vs-robert-kahre.html
Reserve does not mean idle. As long as the resources exist in non-volatile investments, they are still legitimate as a reserve. That is, the state “reasonably guarantees” to cover the face value of the coin. It’s not hard to cover the coined fraction of their $1b in gold in an emergency when annual tax revenue alone is $51b. Though in practical terms, only a fraction of a fraction of those that held the coins would want to redeem them at any given time.
In practical terms, even in a major crisis, those who hold Texas coin would be at the head of the list to be paid, and it would be independent of the price of gold at the time.
Sure, but.....
And as long as Texas had a $10,000 cash reserve for every outstanding coin
Cash reserve has a specific meaning. You could stretch it to include near cash. Bank deposits, short term Treasuries, even state bonds.
when somebody paid Texas $10,000 for a 1 ounce coin, Texas could turn around and buy five times that amount of raw gold.
Nonvolatile certainly shouldn't include raw gold.
It’s not hard to cover the coined fraction of their $1b in gold in an emergency when annual tax revenue alone is $51b.
Sounds like you're moving from full, cash reserve to full faith and credit.
It invariably gets fuzzy from all sorts of different directions, many of which have no direct bearing on the gold itself.
For example, just by having $1b in gold reserves in their depository, even before the first coin is minted, likely means that their state credit rating will go up, which doesn’t seem to even be possible, because they have an AAA rating pretty much across the board. Yet investors will preferentially choose investing in Texas over other AAA investments because of it.
But the bottom line is there really is no difference between a 100% cash reserve and “full faith and credit”, because it is up to the state itself whether to pay off.
It means they can buy their own gold and silver. They can start directing payment terms in actual bullion instead of US dollars. This allows them to build up currency without rejecting dollars as legal tender.
They can force major vendors to pay in bullion. Do that enough and you have your own Federal Bank of the Republic of Texas.
They can direct state oil taxes to be paid in bullion and silver. Oil companies are used to currency arbitrage, so its not all that tough to make the transition for them. In fact, being based in a state with a back up banking system that is guaranteed solvent is a good thing.
Fed debt clock has been frozen for 90 days. Abbotts doing his job - protecting his state.
Serial numbering.
Bank records will show ownership.
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